The High Court has dismissed the CFMEU’s challenge to its forced administration. Photo: Michelle Kroll.
The construction division of the CFMEU is headed for a cleanout now the High Court has unanimously dismissed a challenge to the union’s forced administration.
About 270 union officials, including bosses in NSW, Queensland and Victoria, were stood down last year following allegations of corruption, bullying and infiltration by criminal bikie gangs.
The Federal Government forced the division into administration and even changed the Fair Work Act to strengthen the Fair Work Commission’s powers to do so.
But the former union bosses challenged the new laws in the High Court on the grounds the parliament did not have the powers under the Constitution to make them.
The High Court unanimously rejected the union’s case on Wednesday (18 June) and dismissed all four points of its challenge.
The government welcomed the decision.
Workplace Relations Minister Amanda Rishworth said it showed confidence in the administration.
“I’ll be really clear. Union members deserve a union that is free from corruption and violence, and criminality,” she said.
“We need to ensure members have a union that is working for them and is free of those elements.
“I believe very much that the process of administration is working to clean up the union, and the members deserve no less.”
Victorian barrister Mark Irving KC was appointed administrator and reported to parliament in February that the High Court challenge was a disruption to the task at hand.
He said uncertainty over whether the former union leaders would be returning to power was inhibiting his ability to extract “full and frank disclosures” from complainants.
Ms Rishworth said the High Court ruling would allow the administrator to continue working without those impediments.
“The government will not tolerate criminal behaviour, corruption, and violence in the construction sector,” she said.
“We need to focus on shifting the culture that has allowed for bad actors to infiltrate the construction industry, and we need to keep them out…
“Our government is committed to the administrator remaining in place until the job is done. And we will continue to provide the administrator and his team with the essential support that he needs to get the job done.”
Master Builders Australia also welcomed the decision, saying it provided certainty for Australia’s building and construction industry.
Chief executive officer Denita Wawn said it was noteworthy the decision was unanimous and all judges had ruled to ensure the law stood.
“We can now get on with the job of making the building and construction industry a lawful one,” Ms Wawn said.
“We commend the Albanese Government in pursuing this administration from day one and for defending the act. Likewise, we thank the Coalition for their support in getting the act through the Senate.
“The time now comes for all stakeholders to recognise a union for the building and construction workers is important, but it has to be lawful.
“And we now need to turn to the safety and wellbeing of all those in the building and construction industry to ensure everyone is playing by the book, they’re following the law, and we get rid of bad actors out of the industry once and for all.”
Australian Constructors Association CEO Jon Davies said while the decision to dismiss the legal challenge to the CFMEU administrator’s appointment had “lifted a cloud from the construction industry”, the “real storm” was far from over.
Mr Davies said huge problems remained in the $60 billion construction sector.
“Many companies are teetering on the edge, one bad job away from collapse,” he said. “Women still make up only 13 per cent of the construction workforce and workers in the industry are six times more likely to die from suicide than a workplace accident.
“The health of the construction industry is important because the industry is Australia’s fourth largest employer, employing over 1.3 million workers and contributing nearly eight per cent of GDP.
“If there is one industry that should be front and centre at the government’s recently announced productivity summit, construction is it.”
A statement issued on the CFMEU’s facebook page said the administration was committed to returning the union to a strong, democratic and member-controlled union.
“Today the High Court ruled the administration of the CFMEU construction division is lawful. It’s now time for the union to draw a line in the sand from our recent history and move forward,” the statement read.
